Mad Money Machine

Hosted by Paul Boyer

New for 2008: Play the MMM Lazy Portfolio Smackdown Game!

Win valuable prizes and fame by playing the Mad Money Machine Lazy Portfolio Smackdown Game in 2008: Email me your Lazy Portfolio before 2 January 2008 to enter!

In 2006 we had a portfolio smackdown between a portfolio of Cramer’s recommended stocks that I selected vs. a basket of ETFs I bought and held. The ETFs won. In 2007 we featured a portfolio smackdown between Cramer’s recommended stocks that 20 volunteers selected vs. the IFA Indexfolio 100. It is neck and neck, meaning being lazy must win, right? So next year in 2008 I would like to create a new competition I’ll call the Mad Money Machine Lazy Portfolio Smackdown in which we pit all the various lazy portfolios against one another. We will be judging not only on return but also risk, as measured by standard deviation. The Mad Money Machine Lazy Portfolio Smackdown will of course feature the IFA Indexfolios, which are the gold standard of reward vs. risk portfolios. We will also include the other lazy portfolios that I have mentioned here previously. But also to make this fun and community-involved, I will include YOUR suggested lazy portfolio.

The rules are simple:
1. Create a portfolio of ETFs or Mutual funds (not individual stocks!) and indicate the percentage holding of each fund. Please limit the number of funds to 15 or fewer as anything more than that is not lazy.
2. Email the ticker symbols and percentages to me at Feedback AT MadMoneyMachine dot com.
3. I will calculate on a weekly basis the YTD return of the portfolio and the YTD standard deviation.
4. I may also try to go back in time with the portfolio to show its historical annualized return and annualized risk. Obviously, most ETFs don’t have any long history, so I may use substitute funds.
5. Three winning portfolios will be selected based upon closing prices December 31 2008 and will be the ones that have the highest reward vs. lowest risk for the year in each of three deciles: 0% to 8% risk, 8% to 16% risk, and 16+% risk.
6. Winners will receive a copy of Index Funds: The 12-Step Program for Active Investors by Mark Hebner of Index Funds Advisors at IFA.com, will be crowned Lazy Portfolio Manager of the Year, and other valuable awards to be determined!
7. Entries must be received before 2 January 2008 so act quickly.

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Mon, December 17 2007 » Announcements, Portfolio Smackdown

6 Responses

  1. sirscof December 19 2007 @ 4:54 am

    Dear Paul,

    I have been listening to your podcast for nearly a year and a half now. I had been listening to Jim Cramers podcast and was looking for an objective analysis of finances and investing when I stumbled upon your podcast. Overall, I have been very impressed with your motivation, opinions and questions on proper portfolio diversification. You should be happy to learn that of the 30+ hours per week of podcasts I listen to, yours is the podcast I most look forward to. Which brings me to the reason of my posting this comment. While I value your opinion on finances, I ingest my fill of politics from the other 29 some hours of podcasts. I have deleted my following comments many times trying to find the right thoughts to share. I value your passion for am improved America, but I do not share your trust in a presidential candidate that believes America is at fault for the terrorist attacks on 9/11. If my opinion has an effect on your decision making processes, please consolidate your opinions to financial specific topics. Thank you, AS

  2. Paul Douglas Boyer December 19 2007 @ 1:26 pm

    Thanks for listening.
    Would you read “Blowback” by Chalmers Johnson and let me know what you think? (You can probably get it from the library, I did.)

    I think the main idea is that our economy is in REAL TROUBLE. So, what is a big way to possibly fix it? Stop spending money, obviously. Where? Elsewhere.

    And, right, I want to stop talking about politics!

    Paul

  3. vancwa1 December 19 2007 @ 7:32 pm

    I’m assuming one portfolio per entrant and no changes (buy/sells) throughout the year.

  4. ravjim December 20 2007 @ 11:25 pm

    I have a question for everyone.

    Which stock tracking site do you use and why do you like it?

  5. Paul Douglas Boyer December 21 2007 @ 6:43 am

    Yeah, let’s say one portfolio per person. And yeah, since it is a LAZY portfolio, no changes.

    As to stock tracking sites, I like Yahoo historical prices and stockcharts.com specifically the perftool. Both include dividends.

  6. phish43 December 21 2007 @ 9:40 am

    I have enjoyed the Mad Money Machine for two years running now and have gained quite a bit of knowledge from the show. I have also found it quite entertaining. Paul is a very fun person to listen to and he works hard to put on a good, accurate and educational show every time. For Christmas this year I am making a donation to the Mad Money Machine. I know that it is just a small gesture in the scheme of things but I feel compelled to do it. It indicates a real appreciation for what Paul does and hopefully will be another push to keep him going to show 200 and beyond. In any case, lesser content on ITunes sells for $.99 each. Think about that. Maybe you too will feel compelled to donate.

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